California Resources Corp (CRC)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 72.60 | 70.65 | 63.85 | 11.09 | 10.97 |
| Days of sales outstanding (DSO) | days | 30.62 | 49.75 | 47.34 | 38.38 | 35.62 |
| Number of days of payables | days | 247.03 | 406.21 | 283.06 | 49.00 | 62.03 |
| Cash conversion cycle | days | -143.81 | -285.81 | -171.87 | 0.48 | -15.43 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 72.60 + 30.62 – 247.03
= -143.81
The cash conversion cycle of California Resources Corporation has shown a positive trend over the past three years. In 2021, the company's cash conversion cycle was the highest at 47.34 days, indicating a longer period required to convert resources invested in the operation into cash inflows.
However, there was a notable improvement in 2022 when the cash conversion cycle decreased to 43.96 days, suggesting better management of working capital and more efficient operations.
The most recent data for 2023 reflects a further reduction in the cash conversion cycle to 28.15 days, indicating a continued improvement in the company's ability to convert resources into cash. This could imply faster collection of receivables, better inventory management, or more efficient payment of obligations.
Overall, the decreasing trend in California Resources Corporation's cash conversion cycle over the three-year period indicates enhanced operational efficiency and effective working capital management within the organization.
Peer comparison
Dec 31, 2023